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RMKe-11

SMEs in RMKe-11

RMKe-11 tabled by YAB Prime Minister on 21 May 2015 is guided by the blue ocean strategy focusing on rapidly delivering high impact on capital and people economy at low cost to the Government.

RMKe-11

RMKe-10

Operating expenditure

RM1.289 trillion

RM1.031 trillion

Development expenditure

RM260 billion

RM223.6 billion

GDP growth is expected to average 5 - 6% during the plan period premised on strong domestic demand and expanding external demand. The growth is expected to be driven by significant increase in productivity and less dependency on inputs from capital and labour.

Four strategies to strengthen the economic fundamentals and maintain economic stability are:Unlocking the potential of productivity to ensure sustainable and inclusive growth;Promoting investment to spearhead economic growth;Increasing exports to improve trade balance; andEnhancing fiscal flexibility to ensure sustainable fiscal position

Key Facts & Figures

2015

2020

GDP growth

4.5- 5.5 %

5.0 -6.0 %(RMKe-11)

Gross National Income (GNI) Per Capita

RM36,937(USD10,196)

RM54,100(USD15,690)

Fiscal Deficit to GDP

3.2%

0.6%

Federal Govt. Debt to GDP Ratio

53.3%

43.5%

Inflation Rate

2.0 - 3.0 %

2.5 – 3.0% (RMKe-11)

Unemployment Rate

2.9%

2.8%

Average Monthly Household Income

RM6,141 (2014)

RM10,540

Average Monthly Household Income of B40

RM2,537 (2014)

RM5,270

Labour Productivity (%)

2.8%

3.7%

Gini Coefficient

0.401 (2014)

0.385

Women Labour Force Participation Rate

53.6% (2014)

59.0%

Malaysian Wellbeing Index (MWI)

-

1.7% (RMKe-11)

Average Annual Growth Rate (%)

RMKe-10(2011 - 2015)

RMKe-11(2016 - 2020)

Real GDP

5.3

5.0 - 6.0

Services

6.3

6.9

Manufacturing

4.8

5.1

Construction

11.1

10.3

Agriculture

2.4

3.5

Mining & Quarrying

0.9

1.3

Average Annual Growth Rate (%)

RMKe-10(2011 - 2015)

RMKe-11(2016 - 2020)

Real GDP

5.3

5.0 - 6.0

Private expenditure

8.3

7.2

Private Consumption

7.1

6.4

Private Investment

12.6

9.4

Public Expenditure

4.8

3.3

Public Comsumption

5.5

3.7

Public Investment

4.0

2.7

Exports of Goods & Services

2.1

2.1

Imports of Goods & Services

3.8

2.3

6 Strategic Thrust of RMKe-11

6 Game Changers In The RMKe-11 Period

1. Unlocking the potential of productivity

• Approach to productivity will shift from Government-driven to targeted actions across the public sector, industry players and individual enterprises with champions identified as role models.

• Labour productivity to increase from RM77,100 per worker in 2015 to RM92,300 in 2020.

2. Uplifting B40 households towards a middle-class society

• The size and composition of middle-class society will grow to 45% share by 2020 (2015:40%).

• Mean income of the B40 households will double to RM5,270 in 2020 from RM2,537 in 2014.

• B40 family members with tertiary education to increase from 9% in 2014 to 20% in 2020.

• Income share of B40 to national household income to increase from 16.5% in 2014 to 20% in 2020.

• Harmonising and streamlining how the system currently operates to reduce fragmentation across the various public and private stakeholders.

• 60% of the 1.5 million jobs created will require TVET-related skills

• Increase annual intake gradually from 164,000 in 2013 to 225,000 in 2020.

4. Embarking on green growth

• A fundamental shift away from “grow first, clean up later” development model towards one that views resilient, low-carbon, resource-efficient and socially inclusive development as an upfront investment

5. Translating innovation to wealth

• Strengthening of relational capital by improving collaboration among stakeholders. Innovation to be targeted at enterprise and societal levels.

6. Investing in competitive cities

• City competitiveness Master Plan will be developed initially for four major cities, based on key principles that increase liveability and stimulate economic growth.

Catalyst Programme to remove barriers and provide assistance to potential SMEs to become home-grown champions. Selection of SMEs will be based on transparent and clear criteria to identify the most deserving and highest potential growth SMEs

S6 : Developing SMEs in Sabah and Sarawak by strengthening infrastructure, encouraging market expansion through e-commerce, reducing the cost of doing business, and increasing outreach of government assistance.

i) Priority to be given to infrastructure development in Sabah and Sarawak which includes increased coverage and quality of telecommunications network, supply of electricity and water as well as transportation connectivity in these states.

ii) Encourage SMEs to expand their markets by adopting e-commerce, cloud computing, and crowdsourcing for financing.

iii) Review regulations to reduce the cost of doing business and increase the outreach of government assistance to SMEs in Sabah and Sarawak.

Other Measures Related to SMEs

Strategic Thrusts

Related Measures

Enhancing inclusiveness towards an equitable society

i) Provide financing and training for B40 households to venture into entrepreneurship

ii) Increase productivity of farmers, fishermen and small holders through adoption of modern technology

ii) Transforming TVET to meet industry demand by enhancing the quality and delivery of TVET programmes. In addition, the TVET will be re-branded to enhance effectiveness

Strengthening infrastructure to support economic expansion

i) Unleashing growth of logistics and enhancing trade facilitation

ii) Encouraging sustainable energy use to support growth

Implication on SMEs

RMKe-11 will focus on developing resilient and sustainable SMEs to achieve inclusive and balanced growth. The contribution of SMEs across all sectors is targeted to increase to 41% of GDP by 2020 with an average annual growth rate of 9.3%. The development of SMEs in the RMKe-11 period will be based on the SME Masterplan (2012-2020) initiatives namely the implementation of the 6 High Impact Programmes and the other supporting initiatives of the Plan.